Form and contents of an Arbitral Award
Form and Contents of an Arbitral Award
An Arbitral Award is the final decision made by the arbitral tribunal on the disputes submitted to arbitration. It is similar to a judgment by a court but is given by arbitrators. The award is binding on the parties and enforceable under the law.
1. Form of an Arbitral Award
The form of an arbitral award generally depends on the governing arbitration law or the arbitration agreement between the parties. However, the following are common principles regarding the form:
Written Form:
The award must be in writing and signed by the arbitrators or by a majority of them.
Date and Place:
The award should state the date it was made and the place of arbitration (venue).
Finality:
The award is usually final and binding, unless the law allows for certain grounds of challenge.
Delivery:
The award should be communicated or delivered to all parties involved.
2. Contents of an Arbitral Award
While the exact contents may vary depending on the arbitration rules or law, a typical arbitral award contains:
(a) Introduction:
Names of the parties
Reference to the arbitration agreement or clause
Composition of the arbitral tribunal (names of arbitrators)
The place and date of the award
(b) Recitals or Background:
Brief facts and background of the dispute
Jurisdiction of the tribunal
Reference to the arbitration agreement and any procedural rules adopted
(c) Issues for Determination:
Clear articulation of the disputes or claims submitted for arbitration
(d) Findings of Fact and Law:
Summary of the evidence presented
Analysis of the facts
Application of relevant laws and contractual provisions
(e) Decision / Award:
Clear and precise determination of the claims (e.g., payment amount, specific performance, declaration)
Costs and fees, if any (e.g., arbitration fees, legal costs)
Interest, if applicable
Any other relief or directions
(f) Signature:
Signature of all arbitrators or the majority
Date and place of signing
3. Types of Awards
Final Award:
Resolves all the disputes referred to arbitration, concluding the case.
Interim or Partial Award:
Decides on some issues or claims but not the entire dispute.
Consent Award:
When parties settle during arbitration and the award records the agreed settlement.
Reasoned Award:
Explains the reasoning and basis for the decision (preferred in commercial arbitrations).
Summary Award:
Sometimes given without detailed reasoning.
4. Legal Requirements and Examples in India
Under the Arbitration and Conciliation Act, 1996 (India), Section 31 specifies that the arbitral award must be made in writing and signed by the arbitrators. It must state reasons unless the parties have agreed that no reasons are to be given.
The award must deal with all issues submitted or be deemed partial.
5. Important Case Laws on Form and Contents of Arbitral Award
ONGC Ltd. v. Western Geco International Ltd., (2014) 9 SCC 263
The Supreme Court emphasized that the award should be reasoned unless the parties agree otherwise. It also reinforced that an arbitral award must be in writing, signed, and address the disputes referred to arbitration.
Associate Builders v. Delhi Development Authority, (2015) 3 SCC 49
This case established the principle that courts should interfere with arbitral awards only on limited grounds specified under the Arbitration Act. The award must be clear and deal with the disputes to be valid.
Maharashtra State Electricity Board v. Tata Hydro Electric Power Supply Co., AIR 1997 SC 1688
The court held that an arbitral award must be clear and unambiguous; it should state the findings on issues and the relief granted.
6. Practical Points
The award should be clear and precise so parties and courts can understand and enforce it.
It should address every claim and defense raised during arbitration to avoid partiality.
Failure to give reasons when required can be a ground to challenge the award.
The place of arbitration mentioned in the award is crucial because it determines the jurisdiction for enforcement or challenge.
Summary
| Aspect | Details |
|---|---|
| Form | Written, signed, dated, and specifying place of arbitration |
| Contents | Parties, arbitrators, issues, facts, law, findings, decisions |
| Reasoning | Generally required unless waived by parties |
| Types of awards | Final, interim, consent, reasoned, summary |
| Legal requirement | Governed by Arbitration Act (e.g., Section 31, Indian law) |
| Case law | ONGC v Western Geco, Associate Builders v DDA, Maharashtra State Electricity Board v Tata Hydro |
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